RIYADH: Saudi Arabia’s real gross domestic product (GDP) contracted by 4.3% in the fourth quarter, government data showed on Sunday, as oil activity plummeted 16.2% from a year earlier following heavy crude output cuts.

The General Authority for Statistics said real GDP for 2023 shrank 0.8% as oil activity decreased by 9%, while non-oil activity grew 4.4%.

The Saudi oil economy has struggled as the kingdom extended a voluntary production cut of 1 million barrels per day until the end of the year, which it says is a preemptive move to stabilise the market.

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Preliminary data had showed real GDP was expected to shrink 3.7% year on year in the fourth quarter.